Investor Relations

NASDAQ: CCBG

$22.22

Market Cap ($M)$376.83

CHANGE
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VOLUME15,843

As of March 21, 2019

Press Release

Capital City Bank Group, Inc. Reports First Quarter 2018 Results

Company Release - 4/23/2018 7:00 AM ET

TALLAHASSEE, Fla., April 23, 2018 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ:CCBG) today reported net income of $5.8 million, or $0.34 per diluted share for the first quarter of 2018 compared to net income of $3,000, or $0.00 per diluted share for the fourth quarter of 2017, and $2.7 million, or $0.16 per diluted share for the first quarter of 2017.

Net income for the first quarter of 2018 included a $1.5 million, or $0.09 per diluted share tax benefit related to a 2017 plan year pension plan contribution. Net income for the fourth quarter of 2017 included a $4.1 million, or $0.24 per diluted share, income tax expense related to the re-measurement of our net deferred tax asset due to tax reform.

Well capitalized with common equity tier 1 ratio of 13.4% and total risk based capital ratio of 17.0%

“I am very encouraged by first quarter results,” said William G. Smith, Jr., Chairman, President and CEO. “Florida is strong and the demographics of our markets are improving. We are once again on the offense following a number of years playing defense after the crisis. Loan growth, rising rates and a phenomenal core deposit base are all contributing to higher net interest income. While we may be nearing the point of inflection, credit quality continues to improve. Lowering our efficiency ratio is a top priority and we have multiple strategies in place to grow our revenues and manage expenses. There is always more to be done, but I am pleased with our progress as we continue to focus on strategies that will produce long term value for our shareowners.”

Compared to the fourth quarter of 2017, the $1.1 million decrease in operating profit reflected a $1.0 million increase in noninterest expense and lower noninterest income of $0.5 million, partially offset by higher net interest income of $0.3 million and a $0.1 million reduction in the loan loss provision.

Compared to the first quarter of 2017, the $1.4 million increase in operating profit was attributable to higher net interest income of $2.0 million, partially offset by lower noninterest income of $0.2 million and a $0.4 million increase in the loan loss provision.

Our return on average assets (“ROA”) was 0.81% and our return on average equity (“ROE”) was 8.14% for the first quarter of 2018 compared to 0.39% and 4.00%, respectively, for the first quarter of 2017.

Discussion of Operating Results

Tax-equivalent net interest income for the first quarter of 2018 was $21.9 million compared to $21.8 million for the fourth quarter of 2017 and $20.0 million for the first quarter of 2017. During the first quarter of 2018, overnight funds increased as a result of seasonal growth in our public fund deposits, and to a lesser degree, savings accounts. A portion of these overnight funds were used to fund growth in the loan and investment portfolios. The increase in tax-equivalent net interest income compared to the first quarter of 2017 reflected growth in the loan portfolio and higher rates earned on overnight funds, investment securities, and variable rate loans, partially offset by a higher cost on our negotiated rate deposits.

The federal funds target rate increased six times since December 2015 to 1.75% at the end of the first quarter of 2018, which positively affected our net interest income due to favorable repricing of our variable and adjustable rate earning assets. Although these increases have also resulted in higher rates paid on our negotiated rate deposits, we continue to prudently manage our overall cost of funds, which was 23 basis points for the first quarter of 2018, compared to 18 basis points for fourth quarter of 2017 and 13 basis points for the first quarter 2017. Despite highly competitive fixed-rate loan pricing across most markets, we continue to review our loan pricing and make adjustments where appropriate.

Our net interest margin for the first quarter of 2018 was 3.43%, a decrease of two basis points compared to the fourth quarter of 2017 and an increase of 22 basis points over the first quarter of 2017. Relative to both comparative periods, the average yield for each earning asset category improved. The decrease in the margin compared to the fourth quarter of 2017 was due to seasonal growth in our overnight funds, resulting in a slightly less favorable asset mix. The increase in the margin compared to the first quarter of 2017 was primarily attributable to loan growth and higher yields on overnight funds and investment securities, partially offset by higher rates on our negotiated rate deposits.

The provision for loan losses for the first quarter of 2018 was $0.7 million compared to $0.8 million for the fourth quarter of 2017 and $0.3 million for the first quarter of 2017. The higher provision compared to the first quarter of 2017 reflected higher loan charge-offs and growth in the loan portfolio. Net loan charge-offs for the first quarter of 2018 totaled $0.8 million compared to net loan charge-offs of $0.9 million for the fourth quarter of 2017 and $0.4 million for the first quarter of 2017. At March 31, 2018, the allowance for loan losses of $13.3 million represented 0.80% of outstanding loans (net of overdrafts) and provided coverage of 181% of nonperforming loans compared to 0.80% and 186%, respectively, at December 31, 2017 and 0.84% and 161%, respectively, at March 31, 2017.

Noninterest income for the first quarter of 2018 totaled $12.5 million and reflected decreases of $0.5 million, or 3.3%, from the fourth quarter of 2017 and $0.2 million, or 1.9%, from the first quarter of 2017. The decrease from both prior periods was primarily attributable to lower mortgage banking fees and generally reflected a seasonal slowdown in loan funding, and to a lesser extent, a lower margin on sold loans.

Noninterest expense for the first quarter of 2018 totaled $27.9 million, an increase of $1.0 million, or 3.8%, over the fourth quarter of 2017 attributable to higher compensation expense of $0.6 million, occupancy expense of $0.1 million, and other real estate owned expense of $0.3 million. The higher level of compensation expense was seasonal and reflected the reset of payroll taxes and incentives. The increase in occupancy expense was attributable to higher maintenance costs. Other real estate owned expense increased due to a valuation adjustment for one parcel of property.

We realized an income tax benefit of $0.2 million for the first quarter of 2018 which included a discrete tax benefit of $1.5 million resulting from the effect of federal tax reform, enacted in December 2017, on a pension plan contribution made in the first quarter of 2018 for the 2017 pension plan year. Absent this discrete item, our effective tax rate was approximately 24%. Income tax expense for the fourth quarter of 2017 was $6.7 million and included a $4.1 million discrete tax expense related to the re-measurement of our net deferred tax asset, also due to the federal tax reform enacted in December.

Discussion of Financial Condition

Average earning assets were $2.592 billion for the first quarter of 2018, an increase of $80.5 million, or 3.2%, over the fourth quarter of 2017, and an increase of $63.3 million, or 2.5%, over the first quarter of 2017. The change in earning assets over both periods reflected a higher level of total deposits.

We maintained an average net overnight funds (deposits with banks plus fed funds sold less fed funds purchased) sold position of $240.9 million during the first quarter of 2018 compared to $174.6 million in the fourth quarter of 2017 and $245.2 million in the first quarter of 2017. The change in the average net overnight funds compared to both prior periods is related to variances in deposit balances which are discussed in further detail below.

Average loans increased $6.9 million, or 0.4% when compared to the fourth quarter of 2017, and have grown $62.1 million, or 3.9% when compared to the first quarter of 2017. The average increase compared to the fourth quarter of 2017 primarily reflected growth in commercial mortgage, construction, and consumer loans, partially offset by a reduction in the remaining loan types. Average growth over the first quarter of 2017 was experienced in all loan categories, with the exception of commercial and home equity loans. A portion of this growth compared to the first quarter 2017 was attributable to three separate loan pool purchases totaling $28.9 million. The loans were individually reviewed and evaluated in accordance with our credit underwriting standards.

We continue to make minor modifications on some of our lending programs to mitigate the impact that consumer and business deleveraging has had on our portfolio. These programs, coupled with economic improvements in our anchor markets and strategic loan purchases, have helped increase overall loan growth.

Nonperforming assets (nonaccrual loans and OREO) totaled $10.6 million at March 31, 2018, a decrease of $0.5 million, or 4.3%, from December 31, 2017 and $7.2 million, or 40.2%, from March 31, 2017. Nonaccrual loans totaled $7.3 million at March 31, 2018, a $0.2 million increase over December 31, 2017 and a $1.0 million decrease from March 31, 2017. Nonaccrual loan additions totaled $3.8 million for the first quarter of 2018 compared to $5.6 million for the fourth quarter of 2017 and $2.9 million for the first quarter of 2017. The balance of OREO totaled $3.3 million at March 31, 2018, a decrease of $0.6 million and $6.2 million, respectively, from December 31, 2017 and March 31, 2017. For the first quarter of 2018, we added properties totaling $0.3 million, sold properties totaling $0.4 million, and recorded valuation adjustments totaling $0.5 million.

Average total deposits were $2.456 billion for the first quarter of 2018, an increase of $77.7 million, or 3.3% over the fourth quarter of 2017, and an increase of $48.8 million, or 2.0% over the first quarter of 2017. The increase in average deposits compared to the fourth quarter of 2017 reflected increases in negotiated NOW and savings accounts. Average deposits compared to first quarter of 2017 reflected strong growth in noninterest bearing deposits and savings accounts. Deposit levels remain strong, particularly given the increases in the fed funds rate. Average core deposits continue to experience growth. We monitor deposit rates on an ongoing basis as a prudent pricing discipline remains the key to managing our mix of deposits.

Average borrowings decreased $0.1 million compared to the fourth quarter of 2017 and decreased $4.6 million compared to the first quarter of 2017. Declines over both prior periods were primarily due to payoffs of FHLB advances, partially offset by increases in repurchase agreements.

Shareowners’ equity was $288.4 million at March 31, 2018, compared to $284.2 million at December 31, 2017 and $278.1 million at March 31, 2017. Our leverage ratio was 10.36%, 10.47%, and 9.95%, respectively, on these dates. Further, at March 31, 2018, our risk-adjusted capital ratio was 17.04% compared to 17.10% and 16.44% at December 31, 2017 and March 31, 2017, respectively. Our common equity tier 1 ratio was 13.43% at March 31, 2018, compared to 13.42% at December 31, 2017 and 12.77% at March 31, 2017. All of our capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ:CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $2.9 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 59 banking offices and 73 ATMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the accuracy of the financial statement estimates and assumptions; legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; harsh weather conditions and man-made disasters; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing, including the long-term impact on our net interest margin from the repeal of Regulation Q; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

USE OF NON-GAAP FINANCIAL MEASURES

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)

Mar 31, 2018

Dec 31, 2017

Sep 30, 2017

Jun 30, 2017

Mar 31, 2017

TANGIBLE COMMON EQUITY RATIO

Shareowners' Equity (GAAP)

$

288,360

$

284,210

$

285,201

$

281,513

$

278,059

Less: Goodwill (GAAP)

84,811

84,811

84,811

84,811

84,811

Tangible Shareowners' Equity (non-GAAP)

A

203,549

199,399

200,390

196,702

193,248

Total Assets (GAAP)

2,924,832

2,898,794

2,790,842

2,814,843

2,895,531

Less: Goodwill (GAAP)

84,811

84,811

84,811

84,811

84,811

Tangible Assets (non-GAAP)

B

$

2,840,021

$

2,813,983

$

2,706,031

$

2,730,032

$

2,810,720

Tangible Common Equity Ratio (non-GAAP)

A/B

7.17

%

7.09

%

7.41

%

7.21

%

6.88

%

Actual Diluted Shares Outstanding (GAAP)

C

17,088,419

17,071,107

17,045,326

17,025,148

16,978,681

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

11.91

$

11.68

$

11.76

$

11.55

$

11.38

CAPITAL CITY BANK GROUP, INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

(Dollars in thousands, except per share data)

Mar 31, 2018

Dec 31, 2017

Mar 31, 2017

EARNINGS

Net Income

$

5,773

$

3

$

2,744

Diluted Net Income Per Share

$

0.34

$

0.00

$

0.16

PERFORMANCE

Return on Average Assets

0.81

%

0.00

%

0.39

%

Return on Average Equity

8.14

%

0.00

%

4.00

%

Net Interest Margin

3.43

%

3.45

%

3.21

%

Noninterest Income as % of Operating Revenue

36.44

%

37.51

%

39.19

%

Efficiency Ratio

81.07

%

77.50

%

85.33

%

CAPITAL ADEQUACY

Tier 1 Capital

16.30

%

16.33

%

15.68

%

Total Capital

17.04

%

17.10

%

16.44

%

Tangible Common Equity (1)

7.17

%

7.09

%

6.88

%

Leverage

10.36

%

10.47

%

9.95

%

Common Equity Tier 1

13.43

%

13.42

%

12.77

%

Equity to Assets

9.86

%

9.80

%

9.60

%

ASSET QUALITY

Allowance as % of Non-Performing Loans

181.26

%

185.87

%

160.70

%

Allowance as a % of Loans

0.80

%

0.80

%

0.84

%

Net Charge-Offs as % of Average Loans

0.20

%

0.21

%

0.10

%

Nonperforming Assets as % of Loans and ORE

0.64

%

0.67

%

1.11

%

Nonperforming Assets as % of Total Assets

0.36

%

0.38

%

0.61

%

STOCK PERFORMANCE

High

$

26.50

$

26.01

$

21.79

Low

22.80

22.21

19.22

Close

$

24.75

$

22.94

$

21.39

Average Daily Trading Volume

21,061

19,112

23,150

(1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to non-GAAP information previously noted.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

Unaudited

2018

2017

(Dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

ASSETS

Cash and Due From Banks

$

47,804

$

58,419

$

50,420

$

72,801

$

47,650

Funds Sold and Interest Bearing Deposits

250,821

227,023

140,694

162,377

290,897

Total Cash and Cash Equivalents

298,625

285,442

191,114

235,178

338,547

Investment Securities Available for Sale

471,836

480,911

510,846

529,686

541,102

Investment Securities Held to Maturity

225,552

216,679

184,262

157,074

158,515

Total Investment Securities

697,388

697,590

695,108

686,760

699,617

Loans Held for Sale

4,845

4,817

7,800

8,213

7,498

Loans, Net of Unearned Interest

Commercial, Financial, & Agricultural

198,775

218,166

215,963

213,544

214,595

Real Estate - Construction

80,236

77,966

67,813

67,331

59,938

Real Estate - Commercial

551,309

535,707

527,331

519,140

503,868

Real Estate - Residential

307,050

308,159

306,272

302,072

295,406

Real Estate - Home Equity

223,994

229,513

228,499

230,995

231,300

Consumer

284,356

278,622

273,670

269,539

268,921

Other Loans

14,988

3,747

9,311

17,057

9,586

Overdrafts

1,187

1,612

1,479

1,518

1,345

Total Loans, Net of Unearned Interest

1,661,895

1,653,492

1,630,338

1,621,196

1,584,959

Allowance for Loan Losses

(13,258

)

(13,307

)

(13,339

)

(13,242

)

(13,335

)

Loans, Net

1,648,637

1,640,185

1,616,999

1,607,954

1,571,624

Premises and Equipment, Net

90,939

91,698

92,345

92,495

93,755

Goodwill

84,811

84,811

84,811

84,811

84,811

Other Real Estate Owned

3,330

3,941

5,987

7,968

9,501

Other Assets

96,257

90,310

96,678

91,464

90,178

Total Other Assets

275,337

270,760

279,821

276,738

278,245

Total Assets

$

2,924,832

$

2,898,794

$

2,790,842

$

2,814,843

$

2,895,531

LIABILITIES

Deposits:

Noninterest Bearing Deposits

$

890,482

$

874,583

$

870,644

$

842,314

$

836,011

NOW Accounts

859,704

877,820

749,816

787,090

882,605

Money Market Accounts

257,422

239,212

249,964

265,032

263,080

Regular Savings Accounts

353,996

335,140

329,742

327,560

321,160

Certificates of Deposit

137,280

143,122

147,451

149,937

156,449

Total Deposits

2,498,884

2,469,877

2,347,617

2,371,933

2,459,305

Short-Term Borrowings

4,893

7,480

6,777

6,105

7,603

Subordinated Notes Payable

52,887

52,887

52,887

52,887

52,887

Other Long-Term Borrowings

13,333

13,967

15,047

15,631

16,460

Other Liabilities

66,475

70,373

83,313

86,774

81,217

Total Liabilities

2,636,472

2,614,584

2,505,641

2,533,330

2,617,472

SHAREOWNERS' EQUITY

Common Stock

171

170

170

170

170

Additional Paid-In Capital

37,343

36,674

35,892

35,522

34,859

Retained Earnings

283,990

279,410

275,013

271,646

268,934

Accumulated Other Comprehensive Loss, Net of Tax

(33,144

)

(32,044

)

(25,874

)

(25,825

)

(25,904

)

Total Shareowners' Equity

288,360

284,210

285,201

281,513

278,059

Total Liabilities and Shareowners' Equity

$

2,924,832

$

2,898,794

$

2,790,842

$

2,814,843

$

2,895,531

OTHER BALANCE SHEET DATA

Earning Assets

$

2,614,949

$

2,582,922

$

2,473,940

$

2,478,546

$

2,582,971

Interest Bearing Liabilities

1,679,515

1,669,628

1,551,684

1,604,242

1,700,244

Book Value Per Diluted Share

$

16.87

$

16.65

$

16.73

$

16.54

$

16.38

Tangible Book Value Per Diluted Share(1)

11.91

11.68

11.76

11.55

11.38

Actual Basic Shares Outstanding

17,044

16,989

16,966

16,964

16,954

Actual Diluted Shares Outstanding

17,088

17,071

17,045

17,025

16,979

(1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to non-GAAP information previously noted.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

Unaudited

2018

2017

(Dollars in thousands, except per share data)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

INTEREST INCOME

Interest and Fees on Loans

$

19,535

$

19,513

$

19,479

$

18,720

$

18,005

Investment Securities

2,762

2,520

2,416

2,169

2,042

Funds Sold

917

594

446

533

493

Total Interest Income

23,214

22,627

22,341

21,422

20,540

INTEREST EXPENSE

Deposits

868

590

530

388

281

Short-Term Borrowings

8

5

15

17

45

Subordinated Notes Payable

475

431

420

404

379

Other Long-Term Borrowings

100

112

115

117

99

Total Interest Expense

1,451

1,138

1,080

926

804

Net Interest Income

21,763

21,489

21,261

20,496

19,736

Provision for Loan Losses

745

826

490

589

310

Net Interest Income after Provision for Loan Losses

21,018

20,663

20,771

19,907

19,426

NONINTEREST INCOME

Deposit Fees

4,872

5,040

5,153

5,052

5,090

Bank Card Fees

2,811

2,830

2,688

2,870

2,803

Wealth Management Fees

2,173

2,172

2,197

2,073

1,842

Mortgage Banking Fees

1,057

1,410

1,480

1,556

1,308

Other

1,564

1,445

1,478

1,584

1,675

Total Noninterest Income

12,477

12,897

12,996

13,135

12,718

NONINTEREST EXPENSE

Compensation

16,366

15,740

16,349

16,292

16,496

Occupancy, Net

4,551

4,400

4,501

4,555

4,381

Other Real Estate, Net

626

355

(118

)

315

583

Other

6,363

6,402

5,975

6,759

6,462

Total Noninterest Expense

27,906

26,897

26,707

27,921

27,922

OPERATING PROFIT

5,589

6,663

7,060

5,121

4,222

Income Tax (Benefit) Expense

(184

)

6,660

2,505

1,560

1,478

NET INCOME

$

5,773

$

3

$

4,555

$

3,561

$

2,744

PER SHARE DATA

Basic Net Income

$

0.34

$

0.00

$

0.27

$

0.21

$

0.16

Diluted Net Income

0.34

0.00

0.27

0.21

0.16

Cash Dividend

$

0.07

$

0.07

$

0.07

$

0.05

$

0.05

AVERAGE SHARES

Basic

17,028

16,967

16,965

16,955

16,919

Diluted

17,073

17,050

17,044

17,016

16,944

CAPITAL CITY BANK GROUP, INC.

ALLOWANCE FOR LOAN LOSSES

AND RISK ELEMENT ASSETS

Unaudited

2018

2017

(Dollars in thousands, except per share data)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

ALLOWANCE FOR LOAN LOSSES

Balance at Beginning of Period

$

13,307

$

13,339

$

13,242

$

13,335

$

13,431

Provision for Loan Losses

745

826

490

589

310

Net Charge-Offs

794

858

393

682

406

Balance at End of Period

$

13,258

$

13,307

$

13,339

$

13,242

$

13,335

As a % of Loans

0.80

%

0.80

%

0.82

%

0.81

%

0.84

%

As a % of Nonperforming Loans

181.26

%

185.87

%

203.39

%

166.23

%

160.70

%

CHARGE-OFFS

Commercial, Financial and Agricultural

$

182

$

664

$

276

$

324

$

93

Real Estate - Construction

7

-

-

-

-

Real Estate - Commercial

290

42

94

478

71

Real Estate - Residential

107

126

125

44

116

Real Estate - Home Equity

158

48

50

-

92

Consumer

695

577

455

537

624

Total Charge-Offs

$

1,439

$

1,457

$

1,000

$

1,383

$

996

RECOVERIES

Commercial, Financial and Agricultural

$

166

$

113

$

79

$

40

$

81

Real Estate - Construction

1

-

50

-

-

Real Estate - Commercial

123

24

69

58

23

Real Estate - Residential

84

141

60

202

213

Real Estate - Home Equity

61

67

84

39

29

Consumer

210

254

265

362

244

Total Recoveries

$

645

$

599

$

607

$

701

$

590

NET CHARGE-OFFS

$

794

$

858

$

393

$

682

$

406

Net Charge-Offs as a % of Average Loans (1)

0.20

%

0.21

%

0.10

%

0.17

%

0.10

%

RISK ELEMENT ASSETS

Nonaccruing Loans

$

7,314

$

7,159

$

6,558

$

7,966

$

8,298

Other Real Estate Owned

3,330

3,941

5,987

7,968

9,501

Total Nonperforming Assets

$

10,644

$

11,100

$

12,545

$

15,934

$

17,799

Past Due Loans 30-89 Days

$

4,268

$

4,579

$

5,687

$

3,789

$

3,263

Past Due Loans 90 Days or More

-

36

-

-

-

Classified Loans

31,709

31,002

36,545

41,322

40,978

Performing Troubled Debt Restructuring's

$

31,472

$

32,164

$

33,427

$

35,436

$

36,555

Nonperforming Loans as a % of Loans

0.44

%

0.43

%

0.40

%

0.49

%

0.52

%

Nonperforming Assets as a % of Loans and Other Real Estate

0.64

%

0.67

%

0.76

%

0.97

%

1.11

%

Nonperforming Assets as a % of Total Assets

0.36

%

0.38

%

0.45

%

0.57

%

0.61

%

(1) Annualized

CAPITAL CITY BANK GROUP, INC.

AVERAGE BALANCE AND INTEREST RATES(1)

Unaudited

First Quarter 2018

Fourth Quarter 2017

Third Quarter 2017

Second Quarter 2017

First Quarter 2017

(Dollars in thousands)

AverageBalance

Interest

AverageRate

AverageBalance

Interest

AverageRate

AverageBalance

Interest

AverageRate

AverageBalance

Interest

AverageRate

AverageBalance

Interest

AverageRate

ASSETS:

Loans, Net of Unearned Interest

$

1,647,612

$

19,636

4.83

%

$

1,640,738

$

19,696

4.76

%

$

1,638,578

$

19,672

4.76

%

$

1,608,629

18,880

4.71

%

$

1,585,561

$

18,137

4.64

%

Investment Securities

Taxable Investment Securities

619,137

2,523

1.64

602,353

2,263

1.50

588,518

2,150

1.45

591,825

1,898

1.28

600,528

1,784

1.20

Tax-Exempt Investment Securities

84,800

318

1.50

94,329

393

1.67

98,463

407

1.65

100,742

414

1.64

97,965

396

1.62

Total Investment Securities

703,937

2,841

1.62

696,682

2,656

1.52

686,981

2,557

1.48

692,567

2,312

1.34

698,493

2,180

1.26

Funds Sold

240,916

917

1.54

174,565

594

1.35

140,728

446

1.26

200,834

533

1.06

245,153

493

0.81

Total Earning Assets

2,592,465

$

23,394

3.66

%

2,511,985

$

22,946

3.63

%

2,466,287

$

22,675

3.65

%

2,502,030

$

21,725

3.48

%

2,529,207

$

20,810

3.33

%

Cash and Due From Banks

52,711

51,235

51,880

52,312

48,906

Allowance for Loan Losses

(13,651

)

(13,524

)

(13,542

)

(13,662

)

(13,436

)

Other Assets

260,595

272,755

275,335

276,799

280,463

Total Assets

$

2,892,120

$

2,822,451

$

2,779,960

$

2,817,479

$

2,845,140

LIABILITIES:

Interest Bearing Deposits

NOW Accounts

$

863,175

$

659

0.31

%

$

782,133

$

400

0.20

%

$

755,620

$

339

0.18

%

$

806,621

$

222

0.11

%

$

880,707

$

134

0.06

%

Money Market Accounts

246,576

103

0.17

249,953

80

0.13

262,486

80

0.12

261,726

57

0.09

259,106

35

0.06

Savings Accounts

343,987

42

0.05

333,703

41

0.05

327,675

40

0.05

322,833

39

0.05

311,212

38

0.05

Time Deposits

140,359

64

0.18

145,622

69

0.19

148,652

71

0.19

152,811

70

0.18

158,289

74

0.19

Total Interest Bearing Deposits

1,594,097

868

0.23

%

1,511,411

590

0.16

%

1,494,433

530

0.14

%

1,543,991

388

0.10

%

1,609,314

281

0.07

%

Short-Term Borrowings

8,869

8

0.37

%

8,074

5

0.25

%

9,920

15

0.59

%

8,957

17

0.75

%

12,810

45

1.43

%

Subordinated Notes Payable

52,887

475

3.60

52,887

431

3.19

52,887

420

3.11

52,887

404

3.02

52,887

379

2.86

Other Long-Term Borrowings

13,787

100

2.93

14,726

112

3.01

15,427

115

2.95

16,065

117

2.93

14,468

99

2.77

Total Interest Bearing Liabilities

1,669,640

$

1,451

0.37

%

1,587,098

$

1,138

0.29

%

1,572,667

$

1,080

0.28

%

1,621,900

$

926

0.23

%

1,689,479

$

804

0.20

%

Noninterest Bearing Deposits

862,009

867,000

834,729

829,432

797,964

Other Liabilities

72,969

80,309

87,268

84,486

79,208

Total Liabilities

2,604,618

2,534,407

2,494,664

2,535,818

2,566,651

SHAREOWNERS' EQUITY:

287,502

288,044

285,296

281,661

278,489

Total Liabilities and Shareowners' Equity

$

2,892,120

$

2,822,451

$

2,779,960

$

2,817,479

$

2,845,140

Interest Rate Spread

$

21,943

3.29

%

$

21,808

3.33

%

$

21,595

3.37

%

$

20,799

3.25

%

$

20,006

3.14

%

Interest Income and Rate Earned(1)

23,394

3.66

22,946

3.63

22,675

3.65

21,725

3.48

20,810

3.33

Interest Expense and Rate Paid(2)

1,451

0.23

1,138

0.18

1,080

0.17

926

0.15

804

0.13

Net Interest Margin

$

21,943

3.43

%

$

21,808

3.45

%

$

21,595

3.48

%

$

20,799

3.33

%

$

20,006

3.21

%

(1) Interest and average rates are calculated on a tax-equivalent basis using a 25% Federal tax rate for 2018 and a 35% Federal tax rate for 2017.

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